AirAsia staff made redundant will be paid three months’ salary as part of their separation package, which has angered many senior staff with lengthy service, sources said.
Even pilots with more than a decade of service are only entitled to three months’ salary as part of the separation package, they said.
Many had expected the package to be calculated according to the number of years of service or based on a voluntary separation scheme and the “last in, first out” principle.
“They too, received three months after 15 years of flying,” a source told The Malaysian Insight.
“Some are unhappy. Some are questioning why so little. If you go by how a layoff should be done, I think they are receiving less than expected.
“Many senior pilots feel that AirAsia is choosing a more drastic approach rather than offering VSS or ‘last in, first out’,” the source said.
Most of the terminations took effect on Monday.
The letter sighted by The Malaysian Insight detailing the breakdown of the package shows that it comprises the compensation and the total amount of notice – that is, three months.
For example, an employee with a salary and fixed allowances totalling RM1,680 and with 3½ years’ experience will receive a severance package of RM8,040. This comprises RM5,040 for three months’ salary, plus compensation of RM3,000.
According to the exit-process guidelines by the airline’s people and culture department, sighted by The Malaysian Insight, the amount is calculated as “n” of days salary + pro-rated leave balance encashment + in lieu of notice amount (three-month salary).
Local staff not subjected to tax clearance will be paid their entire package upon clearance of the exit process before June 19.
Expats and locals who are subjected to tax clearance will be paid 70% of the separation package plus their “n” days salary and prorated leave balance upon the clearance of the exit process on before June 19.
The remaining 30% will be paid upon tax clearance.
On June 3, townhall sessions were held informing staff from various departments of the imminent layoffs as part the airline group’s resizing exercise.
A total of 172 pilots, 111 cabin crew members and 50 engineers reportedly lost their jobs.
The budget airline is looking to reduce its workforce by 30%. – TMI